Capital Acquisitions Budget

509 Words2 Pages
The capital acquisitions budget has a number of options available to it. There are a number of different elements that need to be taken into consideration, such as the state of the existing resources and the need within the community. This report will focus on the financial aspects only, however. The first potential acquisition is two garbage trucks to help handle collection as our county's population and business base expands. The trucks each cost $150,000 and have a useful life of 10 years. The total cost of the trucks is $300,000 and they have a useful life of ten years. This means that the total cost per year for the trucks is $30,000 or $15,000 per trucks. The second option is one bulldozer, which has a cost of $240,000. The bulldozer has an expected life span of eight years. Thus, the per year cost of the bulldozer option is $30,000, the same as the cost of the two garbage trucks. The third option is to purchase three riding lawnmowers at a cost of $16,000 each. The mowers have a life expectancy of five years. This option has the lowest total cost at $48,000, and the lowest total cost per year of useful life at $9600. The fourth option is a new activity center, of which state funding will amount to $650,000. The center will last forty years. The cost is the highest, but the cost per useful year is $16,250, a level that is higher than the mowers but much lower than the bulldozer or the garbage trucks. If county funds are limited, the financials alone point to the
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